Telangana Chief Minister K Chandrasekhar quoting a recent CAG report, for the financial year 2017-18, stated that the state stood first in the revenue growth rate in the country. But what was not give out was the fiscal deficit numbers which is almost double the revenue growth rate. Reports suggest that this is surge in deficit is due to poor financial management by the government.
As per the CAG report Telangana registered a revenue growth rate of 16 percent from February 2016 to February 2017 while fiscal deficit is at 32 percent. The TRS government borrowed around 10000 crore rupees apart from the allocated budget for the implementation of its flagship programmes like Mission Bhagiratha and Mission Kakatiya, along with other projects during the same period. Initially the fiscal deficit was on par with the budget but due to this new carry off it inflated.
It may be recalled that earlier in March, CAG on financial management and budgetary control pointed out many instances of unrealistic budgetary assumptions and weaknesses in expenditure monitoring and control by the Telangana state during the year. KCR who keeps comparing with Gujarat, earned more revenue and seen a drop in its fiscal deficit by 33.46 percent in the same period.
